Implement and monitor Health Sector Recovery
Program so as to increase provision of health service units per inhabitant. In particular, (i) raise
DPT coverage of population to 80 percent; (ii) reduce index of geographic inequality in the provision of health care
services to below 2.8; (iii) increase proportion of health posts/centers stocked with Essential Drugs
Program kits to 90 percent; and (iv) increase the proportion of health posts/centers staffed
with trained personnel to 90 percent.

Throughout

8.2

Increase (annually) current expenditures both in real
terms and as a share of total current expenditure in line with medium-term expenditure
framework.

1999-2001

8.3

Develop and approve new Health Sector Strategic
Plan.

December 2000

8.4

Develop and adopt National Multisectoral Strategic
Plan on HIV/AIDS.

June 2000

9. Education

9.1

Improve quality of, and access to, primary and
secondary education.

Implement and monitor the Education Sector Strategic
Program (ESSP). Attainment of its goals to be measured by improvement of 1-2 percentage
points annually in (i) gross enrollment rate; (ii) proportion of students in primary and
lower secondary schools passing key examinations; (iii) average repetition rate in primary
and lower secondary schools (reduction).

Throughout

9.2

Increase (annually) current expenditures on education
both in real terms and as a share of total current expenditure in line with medium-term
expenditure framework.

Increase each year the government's share in financing
of periodic and routine road maintenance expenditures, and ensure a smooth flow of maintenance
financing.

Throughout

12.2

Reclassify road network, including previously
unclassified roads.

December 2000

12.3

Separate state construction units and plant pools from
road directorate and initiate privatization of the plant pools.

October 1999

12.4

Remove barriers to competition in transport and
telecommuni-cations.

Adopt regulations for coastal shipping associated with
the Maritime Law (Lei do Mar) to permit private sector entry.

December 1999

12.5

Submit to National Assembly telecommunications
legislation that would guarantee right of entry to private companies; complete implementing
regulations.

June 2000

13. Energy and
water

13.1

Improve access to electricity and water and reduce
costs.

Adopt regulations for implementation of electricity
law that clears the way for private sector involvement in generation and distribution of
electricity, and that establishes autonomous regulatory body.

December 1999

13.2

Commence implementation of plan for demand-based
water provision (Rural Water Transition Plan) in all provinces.

March 2002

14. Statistics

14.1 Compilation
of statistics

Improve quality, timeliness, and dissemination of
statistics.

Produce preliminary annual national accounts within 6
months of the end of the year. Produce final annual national accounts within 10 months of the
end of the year.

Throughout

14.2

Compile quarterly production indicators within 45
days of the end of the quarter.

Sources: Mozambican authorities; and
staff estimates and projections.1A minus sign indicates depreciation. Figure for 1999 represents change over 12
months through March.2Public and publicly guaranteed debt after rescheduling, in percent of three-year
export average.3Based on the amount committed at the decision point.4Excludes IMF debt.5In view of the best efforts being undertaken by Mozambique to conclude
debt-rescheduling agreements, the country is deemed to have no arrears outstanding for
programming purposes.

Sources: Mozambican authorities and staff estimates and projections.1Including the Fund.2Excluding the Fund.3Includes IDA interim assistance under the HIPC Initiative in 1999 (US$150
million).4Private sector borrowing.5Assumes rescheduling of private debt of the Cahora Bassa hydropower project in
mid-1997. Includes only concluded agreements with Paris Club creditors and Brazil. Debt relief
in 1998 and 1999 includes US$23 million of interim assistance provided by Paris Club creditors
under the HIPC Initiative. Part of this assistance (the topping up of the 1996 flow rescheduling
to Lyons terms) is included above the line as reduced debt service payments.6Financing gaps after mid-1999 to be covered by HIPC assistance and the
application of traditional rescheduling mechanisms by non-Paris Club
creditors.